Part 3: Recognising when timing becomes the issue

One of the phrases I find myself using quite often is that estate and inheritance advances solve timing problems rather than wealth problems. I think that’s an important distinction because it’s easy to assume these products are only relevant when someone is struggling financially. In reality, many of the families we help are financially secure. They may own valuable property, have substantial investment portfolios or be expecting a significant inheritance. The challenge isn’t a lack of wealth. It’s that the wealth they have, or are due to receive, isn’t available when they actually need it.

For executors, that pressure usually comes from responsibilities that can’t simply be postponed. Inheritance tax is the most obvious example because HMRC’s timetable doesn’t move simply because probate is taking longer than expected. If the estate doesn’t have enough available cash to meet that liability, the executor has to find another way of bridging the gap. The same principle applies to other estate costs as well. There may be professional fees to settle, liabilities that need clearing or a property that would benefit from renovation before it’s sold. None of those things become less important simply because the estate hasn’t yet been realised.

The conversation with a beneficiary is naturally different because it’s their own plans and commitments that are affected. One question I often encourage advisers to ask is, “If you had access to your inheritance today, what would it allow you to do?” I like that question because it shifts the discussion away from the product and towards the client’s circumstances.

Some people will tell you they’d leave the money where it is because they have no immediate use for it. In those cases, waiting for probate to complete may be exactly the right decision. Others quickly describe plans they’ve already put on hold. They may want to buy a property, invest in a business, help their children financially or clear expensive borrowing. Sometimes the need is practical, while at other times it’s about taking advantage of an opportunity that won’t wait. Neither is more valid than the other. What matters is understanding how the delay is affecting the choices available to them.

That’s usually the point where the conversation becomes genuinely useful. Rather than thinking about whether someone needs an inheritance advance, I’m trying to understand whether waiting for probate is forcing them into decisions they wouldn’t otherwise make. If the answer is yes, it’s worth exploring whether another option might allow them to stay closer to their original plans.

One thing Adam and I both hear regularly from advisers is how surprised they are by the speed of the process once they understand how it works. The first response is often, “I didn’t know this was a thing.” The next question is usually much more practical: “How quickly could this be done?” That’s entirely understandable because many people assume arranging an advance will involve lengthy applications or extensive additional paperwork.

In practice, much of the information we need is already being gathered as part of the probate process itself. Assuming the necessary documentation is available, applications can often be assessed and completed within a matter of days. That speed is important because the conversation is almost always taking place for a reason. Whether it’s meeting an inheritance tax deadline, completing on a property purchase or simply helping someone move forward with plans they’ve had to postpone, being able to act quickly can make a significant difference.

What I always remind advisers is that they don’t need to become experts in the mechanics of estate or inheritance advances. Their role is to recognise when waiting is beginning to shape financial decisions that wouldn’t otherwise need to be made. Once they’ve identified that, our role is to assess whether an advance is appropriate, explain the options clearly and guide the client through the process from beginning to end.

I’ve always thought that’s where the relationship works best. Advisers continue doing what they do best by understanding their clients and recognising when additional support may be helpful. We do what we do best by helping those clients understand whether an estate or inheritance advance is the right solution for their particular circumstances.

Read the series:

• Part 1: Why advisers miss referral opportunities
• Part 2: Start by understanding your client’s role
• Part 3: Recognising when timing becomes the issue
• Part 4: Setting realistic expectations about probate
• Part 5: Looking beyond inheritance tax